The United Nations Industrial Development Organization (UNIDO) has sounded the alarm over the United States’ recent surge in tariffs, warning that such measures could slow global economic and industrial growth.
In an article published on Friday, UNIDO’s leaders criticized the U.S. tariff hikes as "the wrong approach," arguing that the new duties lack solid evidence to back their intended benefits. Instead, the organization says, these measures drive up production costs, erode economic efficiency and weaken international competitiveness.
"Higher tariffs hurt everyone," UNIDO Director General Gerd Mueller said, highlighting that beyond raising prices for manufacturers, the barriers could put jobs at stake in both developing and advanced economies. Vulnerable countries, in particular, may feel the pinch first.
UNIDO points to data from the World Trade Organization, which in its 2025 forecast predicts a 0.2 percent drop in global trade—2.9 points lower than baseline expectations—blaming both the U.S. tariffs and ongoing trade uncertainty.
For businesses and startups, unpredictable tariffs can disrupt global supply chains, underscoring the growing importance of digital solutions and agile strategies to stay afloat in a shifting trade landscape.
Instead of building walls in industry, Mueller urged a different path: "We need fair, sustainable cooperation. Industrialized and developing nations must work together to create win-win strategies and ensure long-term prosperity for all."
The warning comes amid rising geopolitical tensions and uncertainty over future trade relations. As economies look for growth drivers, UNIDO’s call for collaboration underscores the need for policy choices that bolster, rather than hinder, shared progress.
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'The wrong approach': UNIDO warns U.S. tariffs risk global growth
cgtn.com
